Council lowers budget shortfall

Hard calls were made in an effort to lower Stanwood’s projected budget shortfall for 2010.

But they did it.

Stanwood City Council agreed to decisions that lowered the general fund shortfall from $436,316 to $257,816 at a budget workshop Thursday. Still significant, but not bad for an evening’s work.

Revenue shortfalls, in large part, are due to a six-year property tax levy lid lift that expires Dec. 31, 2009. This lessens the city’s projected revenue for 2010 by $350,000.

To compensate, council made the following decisions:

• Do not move $ 100,000 to building improvement fund from general fund;

• Disperse half the usual amount to vehicle replacement fund, moving the remaining

$ 35,000 to general fund;

• Do not increase professional services fund by $ 30,000; instead, keep in general fund (this increase was proposed to cover any contingencies resulting from the lack of a human resources department in 2010. When the city’s human resources director accepted a job offer in May, city administrators decided not to fill the position in expectation of budget shortfalls. This decision will save the city $125,000);

• Mayor Dianne White forfeited $ 3,500 allocated to her for travel to trainings, meetings, etc. “I’ll just eat it,” White said;

• Take $ 5,000 out of fund for council member trainings, meetings, etc;

• Take $ 5,000 out of fund for town hall meetings and surveys.

These decisions save the city $178,500 in 2010. When subtracted from the original projected shortfall, the city is still minus $257,816.

“We’ve got to balance this budget,” said councilmember Arne Wennerberg.

Councilmember Timothy Loney, while happy the budget is closer to being balanced, urged the city to find a permanent solution. The city can’t continue depleting other funds to prop up the general fund.

“I worry we’re borrowing from the future,” he said.

Councilmember Bill Carlton agreed the city must soon look at other options.

“We’re not sustaining the revenue to operate the city we’re operating,” he said.

The council will continue to meet regarding the projected 2010 budget. Their next scheduled workshop is Thursday, Nov. 19, at 6 p.m. in the school district’s administration building, 26920 Pioneer Hwy, Stanwood.

Northbound Stanwood to Vancouver,

BC:

9:03 a.m. & 8:14 p.m.

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9:18 a.m. & 8:25 p.m.

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